Which of the Following Can Explain the Upward Slope of the Short-Run

question 87

Multiple Choice

Which of the following can explain the upward slope of the short-run aggregate supply curve?

• A)nominal wages are slow to adjust to changing economic conditions
• B)as the price level falls,the exchange rate falls
• C)an increase in the money supply lowers the interest rate
• D)an increase in the interest rate increases investment spending

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Definitions:

Sigmund Freud

The founder of psychoanalysis, this Austrian neurologist introduced a new clinical technique aimed at resolving psychological disorders by facilitating dialogue between a patient and a psychoanalyst.

Therapy

The treatment of mental or psychological disorders by psychological means.

WWII

The Second World War, a global conflict that lasted from 1939 to 1945, involving most of the world's nations and culminating in significant loss of life and changes to the global political landscape.

The Great Depression

A severe worldwide economic downturn that took place during the 1930s, marked by high unemployment, deflation, and financial instability.